The Hindu : Front Page : Industrial estate in Salem still dormant

Online edition of India's National Newspaper
Wednesday, Nov 23, 2005

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Industrial estate in Salem still dormant

S. Ramesh

YET TO TAKE SHAPE: The Electrical and Electronics Industrial Estate in Salem. - Photo: P.Goutham.

SALEM: Nearly 15 years have passed since the Electrical and Electronics Industrial Estate was established in the city. But this specially created industrial cluster to promote electrical and electronic goods manufacturing is yet to witness any significant entrepreneurial activity, thanks to the lack of a comprehensive development programme.

The State Government developed 52 plots on a 27.5-acre land in Sooramangalam here for the estate in 1990. Only 14 units were started initially, which included a large resistor factory of the Electronics Corporation of Tamil Nadu (ELCOT). A major portion of the estate remained vacant for years as no entrepreneurs took up industrial activity in the allotted plots.

Meanwhile in 1997, the ELCOT closed its unit owing to marketing and financial problems. A few other units had also closed down following inadequate support from the Government and their inability to adopt new technologies.

Subsidy withdrawn

Industrialists say that the Government did not come up with any programme to encourage entrepreneurs to start industries in the estate. In 2002, it also had withdrawn the special capital subsidy of 20 per cent provided to the electronic industries. This made entrepreneurs hesitate to start industries.

"Despite Salem having infrastructure, good transport links and easy access to major industrial cities such as Bangalore, Chennai and Coimbatore, the project is unsuccessful," industrialists say. A District Industrial Centre (DIC) official says that about 20 vacant plots have been re-allotted in 2004 and 2005. "A few entrepreneurs who have got allotments have showed interest in establishing electrical industries. About seven industries are going to come up."

The Department of Industries and Commerce, promoter of the estate, will auction two more plots on December 30. Interested entrepreneurs can submit tender documents. The last date for submitting the documents is December 12.

For details, contact the General Manager DIC, Salem.

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